FAQ
Questions,answered plainly.
What is HoodFold?+
HoodFold is an automated yield layer for tokenized equities. You deposit into a strategy called a HoodFold, and the protocol runs the DeFi mechanics for you.
What is a HoodFold?+
A HoodFold is an automated on-chain strategy that combines tokenized-stock exposure with DeFi yield sources — stablecoin lending, on-chain liquidity fees, stock lending where available — and compounds the result.
Do I still have stock exposure?+
Yes, in part. Depending on the selected HoodFold strategy, a defined portion of the position stays exposed to the underlying tokenized equity.
Is HoodFold the same as holding the stock?+
No. A HoodFold also holds stablecoins, liquidity positions and lending positions, so its return can differ from simply holding the underlying equity token — in either direction.
What is HoodFold Alpha?+
HoodFold Alpha compares a HoodFold's total return with the return of the underlying benchmark. Positive HoodFold Alpha means the HoodFold did better than holding; negative means it did worse.
Can HoodFold Alpha be negative?+
Yes. Trading fees and lending yield may not always compensate for impermanent loss, slippage, protocol fees or other strategy costs.
Where does the yield come from?+
Potential sources are DEX trading fees, stablecoin lending, and stock lending where a supported market exists. Compounding reinvests what those sources produce.
Is stock lending always available?+
No. It depends on supported lending markets and real borrower demand. When no approved market exists, the stock allocation is used only in the liquidity strategy or left idle — HoodFold does not display stock-lending income that isn't there.
What is hfNVDA?+
hfNVDA represents your share of the NVDA HoodFold vault. Its value tracks the underlying strategy assets and the returns they generate.
Is my return guaranteed?+
No. Returns are variable and capital is exposed to multiple risks, including loss.
What is impermanent loss?+
When a HoodFold provides liquidity, the value of that position can drift below what you'd have if you simply held the two assets, because the pool rebalances against price moves. It is a real cost and it is shown in every return breakdown.
What happens when stock markets are closed?+
Tokenized assets may keep trading on-chain while traditional reference markets are closed, which can increase pricing uncertainty. Future market-aware strategies are designed to reduce aggressive liquidity exposure during those windows.
Does HoodFold issue real stocks?+
No. HoodFold works with supported tokenized-equity assets issued by third parties.
Is HoodFold a brokerage?+
No. HoodFold is on-chain infrastructure for automated strategies around tokenized-equity assets. Nothing here is investment, legal or financial advice.